Investing in the Stock Market

So you love making money?! Nothing wrong, in fact everything is right!! Everyone looks at making money from the NASDAQ. And that is why you should be careful with your hard earned money!

It is good that unlike many people in the developing worlds, you do not think that stock markets are a gamble, but at times, you have to learn to be a little risk averse from them. With the American economy slowing down considerably, it is of prime importance to know which the safer stocks are that you can invest in, in spite of their prices being on the lower end.

Portfolio analysts are making a lot of money these days. And why not? You are paying them to let them take a call on your behalf. In fact that is a good thing that you do- a lot better than losing up money. But for those of you who want to handle situations alone, we make some noteworthy points:

 Try not to buy and sell at the very opening of the market. The market is in general a lot more volatile during the first thirty minutes of trade.
 Do not buy a stock unless you are sure of when you want to sell it.
 If you are in the market, you should know about having margin accounts. However, having such an account and using them are two different things. Try not to use them unless you know how to handle them and keep yourself out of trouble.
 Stop loss orders are a must if you do not want to lose money. Keep increasing the limit of the stop loss as you gain more money and experience.
 Consider all the external factors that could affect the market. The recent earthquake in China or a flood in some state of India can affect the market rates in such a globalized market. Infact, China and India are two economies you should keep note of in the view of emerging markets.
 With the US economy in a slump, it is advisable to invest in foreign markets that do not have much to trade with the US and will be the least affected and do not have much of trade with the US.

As a final note, as they popularly say, both bulls and bears make money, only the hogs lose out! So, do not hog… money is sure to flow in if your basics are right!